TAX BASICS

7 Common fears of starting a business

All of us have the talents that make us unique. Many of you people reading this would also like to commence a business of your own. But are we confident to leave our day job and willing to risk our lives?

     I do not believe most of us can make that decision. That is common for most individuals. We all have our own lives and responsibilities, which we have to fulfill. If I leave the job, how will I meet my expenses? What if I am wrong? Will I let people down? Will I get a good job if I fail to succeed in my venture? 

 

Every individual goes through all these kinds of thoughts before starting their own business, which pulls back the majority. Fear is not an uncommon thing limited to a few. Everyone has one or the other fear and, people have various fears while commencing their own business. Let us discuss some of the roadblocks and how you must overcome these fears of starting a business.

 

  1. The fear of failure

               The most common reason why the majority hold themselves back at the thought process. Will I be able to implement the plan and be successful or, will I be a failure. If you fear your success, it affects your mind and brain, restricting you from performing to the best of your abilities. Guaranteed success is not an option that everyone can choose. If it was then, the world would be filled with millionaires and billionaires. Success comes for individuals who believe in the idea and work. Our mind-set is the key to how we perform. 

 

Billionaire and business tycoon Sir Richard Branson of the Virgin Group said that failure is one of the most valuable learning tools. It is what you learn from your mistakes and, the ability to bounce back ultimately leads to success.

 

  1. Considering other people’s opinions.

                               If you are someone who wants to start a business and, you say this to your peers. Even if there might be motivations, but people tend to overthink what, if I fail? This is not helped by some of the pushbacks which you receive. 

 

People will always have different viewpoints, and objections are bound to arise. If we start doubting yourselves and consider others’ opinions, then we are holding ourselves back. You have to believe in yourselves and prepare for an onslaught from your peers.

 

The importance of the right state of mind has been widely mentioned by Napoleon Hill in his best-selling book Think and Grow Rich. “Opinions are the cheapest commodities on earth. Everyone has a flock of opinions ready to be wished upon anyone who will accept them. If you are influenced by opinions when you reach DECISIONS, you will not succeed in any undertaking.” – Napoleon Hill.

 

The only person with any loss is you, so you should forget about all the negatives and concentrate on what you want to achieve. Set proper targets and milestones for yourself to ensure you are on track. You will feel better when you complete these milestones.

 

  1. The fear of lack of knowledge

                               If knowledge was the deciding factor for success, many of the leading minds would not have made it. By no means this means you can wake up and start a business. Yes, you need knowledge in your industry, but more importantly, you require knowledge to commence the business and operate accordingly.

 

The business has a dynamic environment where you learn new things every day. If you want to start after you become perfect. Then you might have to wait for a long time. You start and, then you learn along the way. It takes time to be an expert in any sector or industry. You might be close to being an expert in some field and, then there will be another innovation that comes along. That’s just the way how things work today. Start and then strive to be the best.

 

  1. Risk

                               The risk factor for any business is high. There are a lot of factors that contribute to the risks and that change from industry to industry. Success comes for individuals who are willing to take the risk. An economic theory proposed by professor and economist F.B. Hawley states profit is a reward for the risk taken in business.

 

  1. Lack of Funds

Cash is the lifeblood of business, and most of the budding entrepreneurs lack the capital to commence their venture. Even if it’s bootstrapped numerous, organizations run out of money. According to an analysis conducted by CB insights, lack of funds is the second highest reason why startups fail. 

Therefore effective management and utilization of cash are vital for your success. There are more opportunities today to raise capital from angel investors and different events. But if you are unlucky, just take one step at a time. Sell your product and reinvest the money into the business. The road will be long and hard, but perseverance and good business acumen will pay off.

 

  1. Customer Response

It is essential to find out that there is a real need for the product in the market. In the CB insights analysis, the biggest reason causing the failure of a start-up is the lack of demand for the product. Our ideas are always going to be close to our hearts. Be true to yourself and consult with as many potential customers as possible. Gather the data and find if there is a need for the product or service in the market. This needs to be done before a ton of money is invested in the business. Once need is established, you can set up your go-to-market strategy for your product or service.

 

  1. Competition

The possibility that your product or service has a competitor in the market is very likely. If you do not have a competitor, it does not guarantee that it’s good news. It could be due to the lack of need for the product. It could also be a new category that needs a massive amount of money to propel the business.

 

 How to overcome the fears of starting a business?

                             Don’t most of us hope how to overcome our fears and start a multi-billion dollar business? Maybe not everyone but most of us have this wish somewhere in us. The truth is there is no secret formula on how to do this. If we look at all the leading organizations and entrepreneurs in the world. At one point, they have faced challenges and, even they would have faced similar fears.

But they have overcome those fears and found a way to succeed. What is ubiquitous in the successful entrepreneurs of this generation and past generations? Their perseverance, belief in the idea, and execution brilliance. Is there a way to overcome your fear? You need to ask yourself the question if you are ready to make the leap of faith. In the end, we all have our own lives and responsibilities. We have commitments for which we are responsible. So you need to decide if the time is right for you to start chasing your dreams.

 

“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.” 

— Jeff Bezos

 I don’t believe most of you can make that decision and there is nothing to be ashamed of. We all have our own lives and responsibilities, which we have to fulfill. If I leave the job how will I meet my expenses? What if I am wrong?  Will I let people down? Will I get a good job if I fail to succeed in my venture. Every individual before starting their own venture goes through all these kinds of thoughts which pulls back the majority. Fear is not an uncommon thing and it is not limited to a few. Everyone has one or the other fear and people have various fears while commencing their own business. Let’s discuss some of the fears and how you must try to overcome these fears.

The fear of failure

 The most common scare which most of the individuals face. Will I be able to implement the plan and be successful or will I be a failure. If you fear your success it affects your mind and brain which restricts you from performing to the best of their abilities. Guaranteed success is not an option if it was everyone would have been successful. Success comes for individuals who believe in the idea and work. Our mindset is the key to how we perform, the importance of the mindset has been widely mentioned by Napolean Hill in his very famous book “Think and Grow Rich”. The only person with any loss is you, so its best you forget about all the negatives and concentrate on what you want to achieve. Set proper targets for yourself to ensure you are on track and you will feel better when you achieve the milestones.

 Bothering about other people’s opinion

 Another major issue which all of us see among ourselves and people we know are we consider a lot what others might think or say about your business. This is a lot interconnected with the fear of failure, people always think what will others say if I fail in my venture. You must understand the fact that many people won’t care a lot about what you really do in your life and the others might have their opinion. You must always understand the fact, there are always a certain number of individuals who are against the idea of business. I am not saying that you shouldn’t listen to others, what I am conveying is that you must only consider the positives. When it comes to evaluating your ideas then you must interact with individuals and collect their feedback.

 The fear of lack of knowledge

 No one is an expert in the field from the beginning, you become an expert through experience. If knowledge was the factor through which people’s succeeded then professors or scholars would be the most successful people in the world. I am not trying to undermine anyone, nor trying to diminish the importance of knowledge. You require knowledge to commence the business and operate accordingly. Don’t wait for the perfect moment to commence the business because that might not come any time soon. A business has a dynamic environment where you learn new things every day. So if you want to start after you become perfect then you might have to wait for a long time. You start and then you learn along the way that’s how you acquire knowledge.

Risk

 The risk factor for a business is obviously high and you might have to make important decisions while conducting your business. The fact everyone must understand and recognize is that there is a risk involved in the business. If success was guaranteed then everyone would be successful. Success comes only for individuals who are willing to take risks and work. There is a popular business saying profit is the reward for the risk undertaken. If you want to do a safe and secure business then you won’t find an idea, because every idea involves risk.

 These are three common fears, apart from these, you might have different fears which differ from individual to individual. People also have fear regarding the demand or customer response towards the product or service. Individuals also fear they might not be able to raise the required funds to operate the business. The profitability of the business is another factor that people fear. These are all valid reasons but if you think of it and don’t act then you won’t be able to achieve the desired results.

 To overcome these fears, you are the one who must take action. Understand the fact that your success depends upon the action you take. So what can you do to overcome these fears? I would suggest you set out milestones at regular intervals. This surprisingly helps you as your mind is been motivated when achieving milestones and also lets you know that you are on track to your destination. The next major step you need to take is to change your mindset of negativity if you possess. If you are negative and do not believe the fact that it is not possible, then everything would be a herculean task. Always try to find the positives and this would keep you an optimist rather than a pessimist.

Learn more about your business and the processes in your business. The more you learn the more confident you become and this would help you not only while dealing with customers but also with future investors. Confidence is key not just for business for anything in your life. Be confident, be focused, work hard and work smartly to achieve your desired results.

Sidharth Bharthan Menon
CEO, taxtotal​